Finder makes money from featured partners, but editorial opinions are our own.

Why analysts are betting on a lift in the CSL share price?


Shares in biotech giant CSL are up just 2% over the last 12 months with analyst expecting more.

Shares in CSL (ASX: CSL) are currently in a trading halt as the biotech giant finalises a fundraising.

But despite gains nearly stalling over the past 12 months, analysts are already betting that Australia’s priciest stock still has further to go.

CSL shares last closed at $297.27.

Why is the CSL stock price in the spotlight?

CSL shares were placed in a trading halt on Tuesday after the company confirmed a $16.4 billion bid for Switzerland-based Vifor Pharma (SWX: VIFN). CSL has already secured backing for its US$179.25 a share offer from Vifor’s board and its large shareholders.

CSL is funding the purchase through up to $8.4 billion in new debt, and an equity raising of $6.3 billion – the country’s largest follow-on equity raising, which includes a $750 million share purchase plan for existing investors.

Media reports indicate the placement has already been covered at the lower end of the $273 to $285 per share price range.

Even if it gets covered at the top end, the stock will see a small dip when it reopens for trading on Thursday, to account for the share dilution and lower issue price.

But beyond the initial stumble, investors do expect the deal to transform CSL into a global pharmaceuticals giant.

Vifor is a global leader in iron deficiency therapies and also focuses on nephrology, cardiology and rare diseases.

That would help diversify the product portfolio for CSL, which is the world's largest maker of blood plasma treatments and currently gets more than three-fourths of its revenue from the segment.

“Vifor Pharma will also expand our presence in the rapidly growing nephrology market, while giving us the opportunity to leverage our complementary scientific expertise,” CSL chief executive Paul Perreault said.

Analysts optimistic

CSL says the merger is expected to be immediately earnings per share accretive and will retain its balance sheet strength, while offering a clear path to long-term sustainable growth.

The deal is already impressing analysts, with brokerage Jefferies lifting its price target on CSL to $343.70 from $338 earlier while maintaining a "Buy" rating, and Citi raising its price target to $340 from $325 while upgrading its rating to "Buy" from "Neutral".

According to Refinitiv Eikon data, 7 of 12 analysts now rate the CSL stock "Buy", while 5 have a "Hold", with the median price target of $327.85, indicating significant upside from current levels.

Both brokerages expect CSL's return on invested capital – a key profitability ratio for shareholders – to decline in FY23.

Jefferies said earnings per share is likely to decrease 4.7% in FY22 and then increase 1.5% in FY23.

However, analysts from both Jefferies and Citi expect CSL's purchase of Vifor Pharma will be a success given the Australian company’s good track record with integrating acquisitions.

Its previous major acquisitions include the Novartis flu vaccine business and Aventis Behring.

Considering buying CSL shares?

If you are keen to buy shares in CSL, you can invest through an online share trading platform.

Keep in mind that not all platforms offer the same list of stocks. Some offer US stocks only, so make sure to select a platform that offers ASX-listed stocks.

Choose from the dozens available for Australian investors. Compare the features and fees from the plethora of trading platforms available.

Looking for a low-cost online broker to invest in the stock market? Compare share trading platforms to start investing in stocks and ETFs.

Disclaimer: This information should not be interpreted as an endorsement of futures, stocks, ETFs, CFDs, options or any specific provider, service or offering. It should not be relied upon as investment advice or construed as providing recommendations of any kind. Futures, stocks, ETFs and options trading involves substantial risk of loss and therefore are not appropriate for all investors. Trading CFDs and forex on leverage comes with a higher risk of losing money rapidly. Past performance is not an indication of future results. Consider your own circumstances, and obtain your own advice, before making any trades. Read the Product Disclosure Statement (PDS) and Target Market Determination (TMD) for the product on the provider's website.

Ask a Question

You are about to post a question on

  • Do not enter personal information (eg. surname, phone number, bank details) as your question will be made public
  • is a financial comparison and information service, not a bank or product provider
  • We cannot provide you with personal advice or recommendations
  • Your answer might already be waiting – check previous questions below to see if yours has already been asked

Finder only provides general advice and factual information, so consider your own circumstances, or seek advice before you decide to act on our content. By submitting a question, you're accepting our 1. Terms Of Service and 6. Finder Group Privacy & Cookies Policy.

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.
Go to site